Delta Air Lines, Inc. (NYSE:DAL) reported a decline in April passenger unit revenue due to a strong U.S. currency and lower charges abroad. The revenue in domestic market was stable. The passenger unit revenue declined 3.5% from a year earlier. The airline company expects the quarterly PRASM to decline in between 2% to 4%.
The operations and recognition
Delta Air Lines provides its services to over 170 million customers annually. It was included in FORTUNE magazine’s top fifty World’s Most Admired firms in addition to being recognized as the most admired airline company for the fourth time in last five years. Delta has been ranked number one in the Business Travel News Yearly Airline survey for 4 successive years. It is for the first time any airline company has achieved the recognition.
The association
Delta Air Lines recently associated with Aeromexico to extend its operations under a JV deal amounting to $1.5 billion. As per the agreement, it will provide jointly-operated flights between Mexico and the US. The approval from Mexican and the U.S. regulatory bodies is still pending. After approval, both the firms will invest in new lounges at airports and will introduce joint sales and promotional initiatives.
Shared agreement
Delta also entered into a code-share deal with Aeromexico in 1995. From that time the airlines have been providing over 4000 weekly flights. Last December, ED Bastian, the President of Delta Air stated that they are negotiating deal terms with Aeromexico to have a new association directed at finalizing a new US-Mexico air treaty.
The significance
Delta Air Lines, Inc. (NYSE:DAL) has been entering into new partnerships and joint ventures with different airline companies so as to increase traffic by providing increased number of light routes across the globe. However, the company is facing stiff competition from gulf-based airlines, Emirates. The company intends to deal with the competition by establishing broad network of flights through significant deals.
